Cosmos has presented continued bearish tendencies since hitting its all-time high early in 2022. The downward move beneath the crucial $20 welcomed steady drops for the alternative token. That saw the alt multi-month lows between $8 – $9. Moreover, ATOM’s short-term outlook remains wobbly as current price actions confirm a descending triangle. While publishing this content, the altcoin traded near $9.14.
Cosmos 4Hr Timeframe
The broad crypto market has exhibited extreme fear sentiments for more than a month. HODLers have battled to retain long-term grounds as the index refrained from significant improvements. Latest declines dragged Cosmos prices towards ten-month lows on May 12, following a 57% crash between May 1 and May 12. The bulls’ motive to keep the $9.2 support has seen rejections since then. That translated to a descending triangle formation on the 4hr chart.
The bearish pattern formation saw volume receding, with prices nearing the triangle’s tighter region. The volume trend plus a breach beneath $9.2 showed an operational descending triangle. Moreover, the price movements around the 20EMA would offer to short opportunity as it will authorize intensified selling control. Such scenarios would reveal short sellers’ take-profit regions at the $7.5 – $8.5. Meanwhile, upswings past $9.2 would fade the bearish outlook.
Reasoning
The pessimistic Relative Strength Index resurged from 34, targeting the resistance level at 45. A closing past this hurdle would translate to recovery chances on the chart. Meanwhile, the Chaikin Money Flow recorded a break beyond the zero level, forming a bearish divergence with ATOM prices at CMF’s peak. Reversals from the trend-line resistance beneath the equilibrium would confirm bearish dominance.
Meanwhile, the global crypto marketplace stayed somewhat calm over the past day. The cumulative value of digital assets noted a brief 0.09% 24hr increase within a day. Nevertheless, bears remain dominant.
Final Thought
The confluence of the southbound Supertrend within the red territory and the descending triangle pattern shows possible downtrends for Cosmos. Drops beneath the support barrier of $9 would trigger a shorting opportunity with profit-booking regions (as mentioned above). Lastly, ATOM investors should watch broad market sentiment to ensure profitable undertakings.